After-hours movers: AMD, Pinterest, CAVA Group, Toast, and more
Investing.com - RBC Capital has lowered its price target on Fiserv (NYSE:FI) to $85.00 from $178.00 while maintaining an Outperform rating on the financial technology services provider. The stock has plummeted 43% in the past week alone, now trading at $68.30, just above its 52-week low of $66.58.
The significant price target reduction comes as RBC Capital analyst Daniel R. Perlin cited concerns about the company’s previous management strategy, which he believes focused too heavily on short-term outcomes while deferring necessary investments.
The analyst specifically highlighted issues with Fiserv’s Argentina business, which is now normalizing after apparently "over-earning" under previous leadership, contributing to what RBC describes as a lack of transparency in the company’s prior model.
RBC Capital noted that aggressive pricing strategies under former management may have led to client frustration and potential customer defections, creating challenges for the incoming leadership team.
Despite the substantial price target cut, the firm maintained its Outperform rating, suggesting the "structural reset will likely represent a trough level of growth and margin for the company," though acknowledging investor trust "will need to be re-established" before broader market interest returns.
In other recent news, Fiserv has faced a series of analyst downgrades following its third-quarter earnings miss and revised guidance for 2025. Argus downgraded the company from Buy to Hold due to the missed earnings expectations and the need to reset growth and margin targets. Bernstein also downgraded Fiserv from Outperform to Market Perform and cut its price target significantly to $80 from $205, citing concerns about the company’s business operations visibility. Seaport Global Securities followed suit, downgrading Fiserv to Neutral from Buy, as the company announced a significant operational "reset" and lowered expectations for 2025, with 2026 described as a "transition year."
Morgan Stanley joined the list by downgrading Fiserv from Overweight to Equalweight, reducing its price target to $81 from $179, following a strategic overhaul announced by the new management team. Keefe, Bruyette & Woods maintained an Outperform rating but significantly lowered its price target from $170 to $92 after the earnings call reset market expectations. These recent developments reflect the challenges Fiserv faces in aligning its strategic goals with market expectations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.